TAXATION
TAXATION
TAXATION
True or False 2
1. The direct export by an export trader shall be considered an export sale
subject to 12% VAT.
2. Hk
3. The commission income from export sales by export traders is exempt from
VAT.
4. The sale to a bonded manufacturing warehouse of an export-oriented
enterprise is subject to effective zero-rating.
5. The sales of goods or services to export processing zones are subject to an
automatic zero-rating without the need for a BIR application for effective
zero-rating.
6. The sales t diplomatic missions are exempt from VAT.
7. The sale to BOI-registered manufacturer is subject to zero-rated VAT so
operations is subject to zero-rated VAT.
8. The sale of goods or services to a domestic carrier for its international
operations is subject to zero-rated VAT.
9. The sale of good s or services to a domestic carrier for its domestic operation
is exempt from VAT.
10.The transport of domestic carriers of passengers, baggage and mails from the
Philippines to a foreign country is subject to zero-rated VAT.
11.The transport of passengers by an international carrier from the Philippines to
a foreign country is exempt.
12.The transport of cargoes, baggage or mails from b an international carrier
from the Philippines to a foreign country is subject to zero-rated VAT.
13.The sale to overseas Filipinos of locally manufactured goods is subject to an
effective zero-rating if paid for in acceptable foreign currencies.
14.The sale to the Asian Development Bank is subject to zero-rated VAT.
15.The sale to embassies with VEC and embassy personnel with VEIC is not
subject to the zero-rated VAT.
c. Both statement
d. Neither statement
150,000
b. Non-resident foreign corp.
Philippines
$
10,000
c. Non-resident alien
Abroad
P
1,000,000
d. Non-resident citizen
Abroad
2,000,000
5. Which is not required in the zero-rating of services rendered to a nonresident?
a. The services must be performed in the Philippines
b. The non-resident alien must be resident in the Philippines at the time
services were rendered
c. The services must be paid in acceptable foreign currencies
d. The payment must be accounted for under the rules and regulation of
the BSP
6. Sale of services to this entity is subject to the 12% VAT.
a. Development Bank of the Philippines
b. International Rice Research Institute
c. Philippines National Red Cross
d. Philippines Amusement and Gaming Corporation
7. Which is not subject to zero-rating?
a. Services to an export-oriented enterprise
b. Sale of services to a BOI-registered enterprise
c. Sale of services to PEZA locators
d. Sale of services to ambassies with VEC
8. Sales to which of the following is not subject to zero-rated VAT?
a. Philippines Amusement and Gaming Corporation
b. Philippines National Red Cross
c. Ecozone entities
d. Government agencies
9. Which is not subject to zero-rating?
a. Sale to a domestic air carrier on its international operations
b. Sale to a domestic sea carrier on its domestic operations
c. Sale to an international air carrier
d. Sale to an international sea carrier
10.Which is incorrect with effectively zero-rated sales?
a. The sale must be rendered in the Philippines
b. The sale must be rendered to a person with indirect tax exemption
c. The sale need not be paid for in acceptable foreign currencies
d. The sale must be made by a VAT-exempt person
P
P
200,000
100,000
300,000
600,000
Compute the zero-rated sales assuming the seller is a VAT taxpayer and a
non-VAT taxpayer, respectively?
a. P 600,000; P 0
c. P 600,000; P 300,000
b. P 300,000; P 0
d. P 300,000; P 300,000
2. An export trader purchased and sold an equipment. The detail of the
purchase and sale were as follows:
Export sales
P
400,000
Purchases
Input VAT
200,000
12,000
Terms
Payment
FOB destination
$ 10,000
FOB destination
P 450,000
FOB shipping point
800,000
FOB shipping point
P 300,000
rate to the Peso was $1:P42 and 1:P0.50.
c. P 1,270,000
d. P 1,570,000
c. P 54,000
d. P 90,000
transaction during the months:
Amount
Unsold
P 1,000,000
$ 100,000
$
50,000
40%
Amount
Exports sales 1
Exports sales 2
Consignment 1
Consignment 2
P 1,000,000
$
80,000
$
50,000
$
10,000
Export sales pertain to goods owned by another entity which Export Co. was
granted 10% export commission. Consignment 1 was sold by foreign
consignees during the month. Consignment 2 remained unsold 75 days as of
the end of the current month. The applicable exchange rate is P43: $1.
Compute the total zero-rated sales or receipts.
a. P 2,494,000
c. P 3,494,000
b. P 2,924,000
d. P 5,590,000
9. A PEZA locators sold scraps to a domestic business for $ 12,000. Which is
correct?
a. The sale is subject to zero-rated VAT.
b. The sale is subject to the regular 12% VAT.
c. The sale is exempt from VAT.
d. The sale is subject to the VAT on importation to the domestic business.
10.Which is an export-oriented enterprise in 2015?
Exporter
sale
a. ABC Co.
300M
b. BCD Co.
350M
c. CDE Co.
126M
d. DEF Co.
2014
Production
Export cost
cost
Export cost
2015
Production
of sale
cost
of
P 200M
P 120M
P 400M
P 400M
P 280M
P 500M
P 150M
P 108M
P 180M
P 250M
P 125M
P 300M
P 300M
P 1,000,000
1,200,000
800,000
P 1,530,000
9,500
P 1,539,000
2,000
P
250,000
Assuming the exchange rate is P43.20: $1, compute the zero-rated sales,
a. P 0
c. P 250,000
b. P 86,400
d. P 336,400
4. Carefree, security service provider had the following receipt during the
month:
Receipt from clients inside PEZA
P 3,000,000
Receipt from clients in the customs territory:
- From the government agencies and GOCCs
1,000,000
- From the Asian Development Bank
1,200,000
- From non-profit clients
1,500,000
- From private clients
2,000,000
What is the total amount of zero-rated sales?
a. P 3,000,000
c. P 4,200,000
b. P4,000,000
d. P 5,200,000
5. A VAT-registered service provider had the following receipt from services
rendered in the Philippines in February 2015:
Paid for in foreign currencies (Peso equivalent)
Services rendered to non-residents
Services rendered to residents
500,000
400,000
800,000
1,200,000
P 2,000,000
3,000,000
P
$
2,000,000
50,000
P
$
4,000,000
100,000
2,000,000
b. P 1,000,000
d. P 3,000,000